Unique new funding service for law firms launched in the UK
Burcher Jennings are working closely with a specialist risk capital provider backed by an international fund management group to provide tailor made funding packages to UK law firms – believed to be the first of its kind in the UK legal industry.
Unlike traditional loans and overdraft facilities that need to be repaid relatively quickly, firms are offered a revolving evergreen facility that should increase in size as the firm grows. This new funding initiative is in response to strong demand from the sector, and seeks to fills the gap in the market for this type of borrowing. It is focused on ensuring the individual needs of law firms are recognised and that access to capital is available at the pace at which they grow.
• Scheme available to firms authorised by the SRA to practice law in England and Wales
• Funding packages tailor made to the requirements of those law firms
• Revolving evergreen facility that can increase in size as the firm grows
• The principal advanced does not ordinarily need to be repaid but, instead, can roll-over for so long as the facilities are in place
• Option for a combined pricing and funding package tailored to each client’s needs
• Pre-marketing of the funding scheme amongst law firms remarkably well received
The funding scheme forms part of Burcher Jennings’ strategic plan to provide services in line with clients’ needs in today’s changing economic climate. The firm now provides services centered on the critical areas of pricing, costs and now funding, which are at the heart of every law firm and their clients’ strategic thinking.
Martyn Jennings, chief executive of Burcher Jennings, commented:
“Funding, when properly structured, can create real opportunities for law firms. The objective behind this new initiative, therefore, is to help counter the several long-standing structural challenges law firms face, namely, succession planning, the gradual withdrawal of Legal Aid and how to secure a competitive advantage by offering clients a wider range of options in terms of pricing”.
He added: “Whether it is to fund disbursements, costs awards, the work in progress of clinical negligence and other CFA matters, individual commercial cases or just the firm’s day-to-day working capital, it is absolutely essential for any managing partner to have a strong understanding of its firm’s own short-term and long-term funding requirements. It makes no sense to us why, if a law firm is growing, it should have to repay its borrowings at a time when it really needs even more funding. That’s what our scheme aims to achieve, namely, a funding facility that can keep on growing.”
A spokesperson for the risk capital provider said:
“We are delighted to be working with Burcher Jennings in structuring facilities for clients seeking a real competitive advantage over other firms. Like pricing and costs, funding is often an essential part of a firm’s vision for the future and long-term strategy. Whilst there are no restrictions on how the funding is applied, firms are already showing considerable interest in using the scheme to fund the new higher court fees, financial remedy proceedings and where they employ partners considering retirement.”
Interest free funding may also be secured to pay for additional training and development, including the Burcher Jennings Pricing Masterclass Workshop.